Weekly Musings – FPI flows for week ended September 05, 2025

8 Sep 2025 , 09:49 AM

GOOD NEWS FAILS TO ENTHUSE FPIS

It was another truncated as FPIs did not report data for Friday. For the week to September 05, 2025; FPIs were net sellers worth $(1,394) Million. They have now sold $(8.0) Billion in last 8 weeks. In August, FPIs sold heavily in financials, IT and hydrocarbons. However, the good news is that; FPIs continue to remain net buyers in debt, on expectations that RBI may cut rates further. For now, tariff sentiments are dominant.

During the week, the dollar index closed flat at 97.76 levels, as traders remained cautious on the dollar. The USDINR still weakened to an all-time low of ₹88.36/$, as hedging demand increased, and the RBI did not offer support. Brent Crude was down at $65.50/bbl on demand concerns. There have been positive data flows from the Q1FY26 GDP and Q1FY26 current account deficit. Fiscal deficit at 30% of full year target is a concern.

MACRO FPI FLOW PICTURE UP TO SEPTEMBER 05, 2025

The table captures monthly FPI flows into equity and debt for last 4 calendar years.

Calendar Month	FPI Flows Secondary	FPI Flows Primary	FPI Flows Equity	FPI Flows Debt/Hybrid	Overall FPI Flows
Calendar 2022 (₹ Crore)	(146,048.38)	24,608.94	(121,439.44)	(11,375.78)	(132,815.22)
Calendar 2023 (₹ Crore)	1,27,759.75	43,347.14	1,71,106.89	65,954.38	2,37,061.27
Calendar 2024 (₹ Crore)	(1,21,210.21)	1,21,637.15	426.94	1,65,342.98	1,65,769.92
Jan-2025 (₹ Crore)	(81,903.72)	3,876.78	(78,026.94)	815.91	(77,211.03)
Feb-2025 (₹ Crore)	(41,748.97)	7,174.62	(34,574.35)	10,273.72	(24,300.63)
Mar-2025 (₹ Crore)	(6,027.77)	2,055.16	(3,972.61)	36,953.97	32,981.36
Apr-2025 (₹ Crore)	3,243.03	980.28	4,223.31	(24,413.24)	(20,189.93)
May-2025 (₹ Crore)	18,082.82	1,777.41	19,860.23	11,089.48)	30,949.71
Jun-2025 (₹ Crore)	8,466.77	6,123.51	14,590.28	(22,153.36)	(7,563.08)
Jul-2025 (₹ Crore)	(31,988.32)	14,247.74	(17,740.58)	12,202.89	(5,537.69)
Aug-2025 (₹ Crore)	(39,063.85)	4,070.42	(34,993.43)	14,488.43	(20,505.00)
Sep-2025 (₹ Crore) #	(12,528.40)	271.47	(12,256.93)	2,751.03	(9,505.90)
Total for 2025 (₹ Crore)	(1,83,468.41)	40,577.39	(1,42,891.02)	42,008.83	(1,00,882.19)
For 2025 ($ Million)	(21,016.73)	4,699.43	(16,317.30)	4,747.16	(11,570.14)
# – Recent Data is up to September 05, 2025

Data Source: NSDL (Net Outflows in brackets)

Overall FPI flows for 2025 are still negative at $(11,570) Million. This comprised $(16,317) Million of net selling in equities, offset by $4,747 Million of net buying in debt. Within equities, secondary market selling was to the tune of $(21,017) Million; offset by IPO buying of $4,700 Million. With the tariff uncertainty done, FPIs may react positively to GST reforms, robust GDP numbers, and the sovereign rating upgrade by S&P Global.

FPI SENTIMENTS – THE WEEK THAT WAS

For the week to September 05, 2025, FPIs were net sellers in equities worth $(1,394) Million. Here are the key market drivers.

• The big story in the week was the rehaul of the GST regime in India. The GST slabs were reduced to just two; 5% and 18%. Most items of mass consumption were cut to either 5% or 0%. Sin goods attract higher tax, but most product taxes have been rationalized.
• The current account deficit for Q1FY26 surprised the street at just $2.4 Billion or 0.2% of GDP. This is the lowest Q1 CAD in the last many years and indicates that India may end with a marginal deficit for FY26. Services exports and foreign remittances saved the day.
• US unemployment rose to 4.3%, the highest level in 4 years. The bigger disappointment was the non-farm payroll additions, which fell from 79,000 in July to a mere 22,000 in August 2025. Apparently, US businesses are neither hiring, nor firing people.
• Global bond yields have shown a rising trend despite strong indications that the Fed may cut rates by 25 bps in its September meeting. This yield spike is due to the mismatch between demand and supply, but is having a serious impact on borrowing costs.
• Tata Sons may get exemption from getting converted into a public company, although the final RBI decision on the same is pending. Tata Sons has met the basic conditions to stay private; like repaying its debt and deposits; and surrendering NBFC-CIC license.

Let us turn to the granular FPI flow story in last 4 weeks.

DAILY FPI EQUITY FLOWS FOR LAST 4 ROLLING WEEKS

Here is the last 4 rolling weeks data on FPI flows in rupee terms and in dollar terms.

Date	FPI Flow (₹ Crore)	Cumulative flows	FPI Flow($ Million)	Cumulative flows
11-Aug-25	2,826.16	2,826.16	322.55	322.55
12-Aug-25	-964.60	1,861.56	-110.13	212.42
13-Aug-25	-2,648.54	-786.98	-302.10	-89.68
14-Aug-25	-2,264.38	-3,051.36	-258.21	-347.89
15-Aug-25	0.00	-3,051.36	0.00	-347.89
18-Aug-25	-1,208.35	-4,259.71	-138.12	-486.01
19-Aug-25	1,015.64	-3,244.07	116.19	-369.82
20-Aug-25	-12.27	-3,256.34	-1.41	-371.23
21-Aug-25	-297.77	-3,554.11	-34.19	-405.42
22-Aug-25	-562.34	-4,116.45	-64.66	-470.08
25-Aug-25	340.16	-3,776.29	38.91	-431.17
26-Aug-25	-1,555.13	-5,331.42	-177.89	-609.06
27-Aug-25	0.00	-5,331.42	0.00	-609.06
28-Aug-25	-5,650.28	-10,981.70	-643.97	-1,253.03
29-Aug-25	-6,088.23	-17,069.93	-694.56	-1,947.59
01-Sep-25	-8,982.89	-26,052.82	-1,022.51	-2,970.10
02-Sep-25	-1,652.11	-27,704.93	-187.19	-3,157.29
03-Sep-25	-937.05	-28,641.98	-106.45	-3,263.74
04-Sep-25	-684.88	-29,326.86	-77.74	-3,341.48
05-Sep-25	0.00	-29,326.86	0.00	-3,341.48

Data Source: NSDL

• In previous 7 weeks, FPIs saw net outflows of $(1,478) Million, $(122) Million, $ (348) Million, $(1,344) Million, $(2,000) Million, $(113) Million, and $(1,090) Million. The week to September 05, 2025, saw net FPI selling of $(1,394) Million in equities.
• In last 4 rolling weeks, total net FPI outflows from equities were ₹ (29,327) Crore or $(3,341) Million. In 2025, FPIs have been net buyers in debt in 7 out of 9 months.

In the coming week, FPI flows will react to 2 key factors. Firstly, it will depend on how the tariff situation pans out. Secondly, FPI flows will also depend on how the GST impact gets interpreted for various sectors. It would surely be interesting times for FPIs!